The major averages closed mixed on Wednesday, after the EU hit Microsoft with a big fine and Fannie Mae reported another huge loss. The Dow gained +9.36, the Nasdaq Composite +8.79, while the S&P 500 lost -1.27.

The EU fined Microsoft (MSFT | Quote | Chart | News | PowerRating) $1.35 billion on Wednesday for antitrust violations (read more).

Fannie Mae (FNM | Quote | Chart | News | PowerRating) reported a $3.6 billion fourth quarter loss (read more). Freddie Mac (FRE | Quote | Chart | News | PowerRating) reports tomorrow.

Nortel Networks (NT | Quote | Chart | News | PowerRating), the networking solutions supplier, beat earnings eastimates by $0.01. However, a large tax-related loss, and full year 2008 guidance, contributed to the greater than 13% decline in the company's share price.

Luxury home builder, Toll Brothers (TOL | Quote | Chart | News | PowerRating), reported a larger than expected loss, but its shares rose more than 3%.